What sanctions are being imposed on Russia over Ukraine invasion?

In its latest attempt to punish Russia for it invasion of Ukraine, the European Union is to ban all imports of oil from Russia that are brought in by sea.

It says this could cut the amount of oil that EU countries import from Russia by up to 90%, reducing the amount of money the Russian government makes from oil sales.

The EU, along with countries such as the UK and the US, have introduced a series of measures to weaken key areas of the Russian economy, such as its energy and financial sectors.

Sanctions are penalties imposed by one country on another, to stop it acting aggressively, or breaking international law.

They are among the toughest actions nations can take, short of going to war.

Up until now, EU states have been importing 2.2 million barrels per day (bpd) of crude oil from Russia and 1.2 million bpd of oil products.

Given the soaring price of oil, this has been earning Russia over $1m (£800,000) a day.

EU nations have agreed to stop importing any oil from Russia that comes in by sea, which rules out about two-thirds of the total.

They will continue, on a temporary basis, to import Russian oil by pipeline. This is to benefit countries such as Hungary and Slovakia, which are highly dependent on it.

However, Germany and Poland, which also import Russian oil by pipeline, say they will stop doing so by the end of this year.

The EU’s president, Ursula von der Leyen, says this will effectively reduce the EU’s oil imports from Russia to 10 or 11% of its current level.

The US is banning all Russian oil and gas imports and the UK will phase out Russian oil imports by the end of 2022.

Germany has frozen plans for the opening of the Nord Stream 2 gas pipeline from Russia.

The EU has also said it will halt Russian coal imports by August.

However, the EU is less keen to impose sanctions on Russian gas, because it relies on Russia for about 40% of its gas needs.

In March, the EU committed to reducing gas imports by two-thirds within a year but has not been able to agree any further action.

Western countries have introduced increasingly widespread sanctions – targeting wealthy individuals, banks, businesses and state-owned enterprises.

Financial measures

Russia’s central bank assets have been frozen to stop it using its $630bn (£470bn) of foreign currency reserves.

This caused the rouble to fall 22% in value, pushing up the price of imported goods and leading Russia’s inflation rate to rise to 14%. The rouble has since recovered, mainly due to measures by Moscow to prop it up, but inflation has risen above 17%.

The United States has barred Russia from making debt payments using the $600m it holds in US banks, making it harder for Russia to repay its international loans.

Major Russian banks have been removed from the international financial messaging system Swift, which will delay payments to Russia for energy exports.

Swift links 11,000 banks and institutions in more than 200 countries

More than 1,000 international companies have either suspended trading in Russia, or withdrawn altogether – including McDonalds, Coca-Cola, Starbucks, and Marks & Spencer.

McDonald’s is leaving Russia and selling off its 850 restaurants, 30 years after setting up there.

Food giant Nestle has withdrawn some of its brands including KitKat and Nesquik, but will still sell “essential foods”.

However, some brands including Burger King, and hotel groups Marriott and Accor say they can’t pull out because their businesses operate under complex franchise deals.

Military goods and mercenaries

A ban on the export of dual-use goods – items with both a civilian and military purpose, such as vehicle parts – has been imposed by the UK, EU and US.

The UK is also imposing sanctions on Russia’s Wagner Group – a private military firm thought to function as an arms-length unit of the Russian military.

Flights

All Russian flights have been banned from US, UK, EU and Canadian airspace.

The UK has also banned private jets chartered by Russians.

Luxury goods

The UK and the EU have banned the export of luxury goods to Russia – including vehicles, high-end fashion and art.

The UK has also imposed a 35% tax on some imports from Russia, including vodka.

How has Russia reacted?

Russia has banned exports of more than 200 products until the end of 2022, including telecoms, medical, vehicle, agricultural, electrical equipment and timber.

In addition, it is blocking interest payments to foreign investors who hold government bonds, and banning Russian firms from paying overseas shareholders.

And it has stopped foreign investors who hold billions of dollars worth of Russian stocks and bonds from selling them.

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